1. Field of the Invention
The present invention relates generally to the field of product manufacturing and more particularly to methods for controlling production quantities.
2. Description of the Prior Art
Increasingly, consumer products are being manufactured under license, often in countries where labor costs are relatively low. While the use of less expensive labor serves to keep manufacturing costs low, placing the production in the hands of overseas manufacturers has lead to certain problems. For example, when an overseas manufacturer is directed to produce a certain quantity of a product, there is little to stop the overseas manufacturer from exceeding the production limit. The excess product can then be sold into unauthorized markets or distribution channels, or can be labeled with a different brand name and sold at a lower price. In either case the licensor is not profiting from the sale of its products, and in the latter case is competing against its own products.
Various approaches have been tried to stem this problem. One solution has been to mark authentic products with either microscopic markings or digital codes. One drawback to this approach, however, is that buyers often cannot distinguish between products that are authentic and those simply manufactured without the microscopic markings or digital codes. Given that the authorized and unauthorized products are otherwise the same, there is little incentive for a buyer to try to draw the distinction. Furthermore, there is little to prevent the licensee from overproducing the products with the proper microscopic markings or digital codes.